Australian mining company BHP Billiton has announced its financial results for the financial year 2017-18 ended on June 30.
Accordingly, BHP Billiton has posted a net profit of US$3.7 billion for the financial year 2017-18, down 37 percent compared to the previous financial year, while the company's revenue increased by 21 percent year on year to US$43.64 billion.
In the given financial year, BHP reported an exceptional loss of US$650 million in relation to the Samarco dam failure. The company stated that restart of Samarco’s operations remains a focus but is subject to separate negotiations with relevant parties and will occur only if it is safe, economically viable and has the support of the community. Resuming operations requires the granting of licenses by state and federal authorities, community hearings and an appropriate restructure of Samarco’s debt.
According to BHP Billiton, global steel production saw broad-based growth across the major regions during the 2018 financial year. Solid downstream demand together with policy-driven supply cuts in China sent the industry-wide utilization rate and profitability higher. China stepped up its efforts to curb air pollution over the winter, with production restrictions and more stringent emission standards. These developments have increased customer preferences for high-quality raw materials. In the long term, the global steel market is expected to continue to grow modestly, with moderating demand growth in China offset by incremental demand from India and other populous emerging markets.